Table of Contents - July Ono: Create Your (Multi) Million Dollar Network
Dave Debeau [00:00:08] Well, hey there, everyone, this is Dave Debeau. Welcome to this episode of the Property Profits Real Estate podcast. And today it's my pleasure to be interviewing and chatting with an old friend. July, onal July. How are you doing today?
July Ono [00:00:25] Awesome, awesome. Awesome.
Dave Debeau [00:00:28] So if you have not had the pleasure of meeting July, learning from July, reading one of July's books, taking some training to July, she is an amazingly astute real estate entrepreneur. And I met wee wee wee wee back when in I say 23 July six, 2004. She's probably right because she's got a better memory than I do. But bottom line with your Tribecca event with seven hundred people in there and I don't know what we're doing, breaking boards or doing something, we're part of this working day. There's a little group. And at that time in my life, I was the how many business cards can I hand out and collect kind of guy. So I was making a very, very awkward attempt at networking, not doing it very well and really not following up with anybody. So I had a shoe box full of business cards I did nothing with, and Jilly really stuck out because we met and we did the card thing and I forgot all about it. But I said, OK, I'll follow up with you early next week. Is that OK? And I said, sure. And I promptly forgot all about that and jumped in my little I bought houses minivan and tore off Froot Loops again. And sure enough, two or three days later I get a phone call and who is it? But it's Jaleo. And we had a nice little conversation. And I said, Would you mind if I or would you like if I wanted you to my mailing list? And I said, sure, why not? And at that time, Jilli was doing a monthly electronic newsletter. So whether it was 2003 or 2004, carmin every single month without fail. I got a lovely update from July and that always stuck in my mind. What a difference what a schmuck I was being doing the networking the way I was doing and how well I did it. Now fast forward 15 years and I believe July at that time. And correct me if I'm wrong, you were just really getting started with real estate investing. I think you only had a couple of couple of deals under your belt relative to how big you grow your portfolio. So remind me roughly, if you can remember around that time, how many properties would you have had at that time?
July Ono [00:02:50] Two thousand. Three. That was our first portfolio. Sixty three unit in Port St. John at two thousand four was a sixty six unit 201 on Unit twenty thousand twenty two. I had a fourplex, two dollar fourplex and Prince George, the nine Plex and Chetwynd. Right.
Dave Debeau [00:03:10] So she's just getting started. Fast forward a decade or so and I built up the portfolio to well over
July Ono [00:03:17] five hundred one point five hundred twenty four units. He's in Prince George, Fort St. John and Thunder Bay, Ontario.
Dave Debeau [00:03:26] So it definitely worked. All that networking definitely worked. And I won't take away your Thunder July because I love you. Tell us briefly how you got started in real estate, because it is one of the most inspirational stories I know of and one that I've repeated, hopefully correctly, quite a few times, because I use you as dapple of, hey, you can start from a little bit behind the eight ball and still definitely take massive action, get successful in real estate. So let's get started. Just tell us a little bit about where you're at and how you got involved in real estate investing in the first place. If you it
July Ono [00:04:01] with a D word that started the whole thing. Dave North.
Dave Debeau [00:04:05] So I know that D word.
July Ono [00:04:06] Yeah, for sure. Oh, and also another B devastated my life. So back in two. Oh jeez. We back in ninety five. I lost my husband, my first husband, I lost my job, I lost everything in six month window and so I had to reinvent my life and that's a huge trauma. When you have no job and you have no house and my husband's gone, so I end up living back home with my parents, live in a basement suite, downsized. And it was quite the humbling and very humiliating experience for me because I think it was all thirty five years old and I had the vision of being the millionaire at forty, and I totally wasn't expecting that. SAT back and realized I'd gone to university, I'd gone to school, get a good job, you know, get the grades and it's like what a bunch of punk that is. I said, no, it doesn't work. I have to go and do something. One hundred and eighty degrees different. And so I said everything I want to do and I'm going to do and my parents were very supportive. We just want to be happy. And so the first thing I did was I allowed myself into acting class and it was so scary. I was just scared shitless. Actually, I know why I was doing it. But guess what? Going into acting was the foundation of becoming a public speaker later. Right. Acting really is all about this. It's all about how to be authentic. And I said what? I was trying to pretend to be somebody else. And they're going, not really. That's not how real acting work. It's about tapping into your truthfulness, tapping into your authenticity, being that person in that particular situation. And so for eight years, I'm practicing breastwork, grounding breath work. And guess what? Breastwork is what you need as a public speaker. And the authenticity is what you need to convey to people that you really are sincere and people can see in sincerity on the screen. The camera doesn't lie. And it's horrible when you see yourself for the first time in film because you're you're seeing what you're not. It's very, very awful. It doesn't look and don't see. Well, the camera can see that. That means people can see way better. And that's why I would attribute the acting classes to a great foundation of always being in the now being in the present with people not going too far ahead, always being here for that person, for you. And so that's what I do with my investors. By the way, I'm not going in the future anticipate what they're going to say. I allow them to be them and I'm present with them as they're speaking. And because as an actor, you have to listen to your other actor in order to respond and you don't know what they're going to do. And your responses have to be truthful in that moment. And so same thing with your investors. Don't try to push them, manipulate them, let them be. A lot of investors are afraid and skeptical. We don't trust you. Everyone is after the money. Right. We've had bad experiences. And so the best thing that you can do is simply listen and really listen. I'm good at taking notes. And so what is their number one concern? Address it. Don't pull the rug and mentoring people saying July, I can't get any investors. It's like, OK, give me your two minutes, let me see your presentation. And I'm usually within 30 seconds say, stop, stop. You're not even listening to me. You're talking at me, right? You haven't even asked me one question as to what are my investing goals. You're only concerned about yourself. No wonder people shut off in the first thirty seconds, because I certainly did. I said stop, get PR.. And I said, your spiel means nothing to me. You can have the deal a decade, but I know you don't care about me. It's that simple. And I usually ask them, do you want the truth? Because I know exactly what's wrong and I know exactly why people don't give you money simply because they don't trust you. When your agenda is more important than their agenda, they simply won't give you money.
Dave Debeau [00:08:37] Yeah, I was worried. So we got off on a tangent already.
July Ono [00:08:41] So far you've got three, six months. Now you're taking acting classes.
Dave Debeau [00:08:48] How does that lead into creating a real estate portfolio?
July Ono [00:08:51] The acting classes help me become a better networker. Up to that I on it, I had a total of five friends. I was very tiny time network, which is why I had a very tiny network and I had to learn every mentor I spoke to, listen to, read about. And Haubegger, the greatest mentor in my life. You have to become a people person. And it's like, no, I love that. I'm not analyzing. No. Oh, it's all people make the difference and how true that is. And so a lot of the acting to get out of my comfort zone and help transition me into networking because I would be around people. And so I needed a purpose. I need meeting people, a strategy. So it's like, OK, when I go out, I'm going to meet at least one person that I can personally connect with and make a really lasting connection. And then I said, well, so many people we just meet. I don't think I have a shoe box full of cards and then I feel stupid, you know, six months later. Hi, remember when we met, which is too far in no follow up. And so I just said we need to start something. I can stay in connection with people every single month thereafter. What is. I don't know, I kept phoning everybody, and that's when the newsletter was born at the time it was email. I remember my first pony and then my first hundred days, I mean ghoul's, and so I went to an event, you had my first thousand. And by the way, I personally cut and paste touched base and touched base. Then like fifteen hundred emails. Why it took eight hours to just send those out one by one, because that's all I could do it. And it was my dad always getting bigger and I had to find a way. And this was at the time when these platforms were starting to come out to make it easier to send letters out. Oh, but I was fanatical 4:00 in the morning sending my newsletter out because it's that important day. It is that important to stay in connection with the people, you know, because if you don't
Dave Debeau [00:11:01] have consistent communication, that's the key right there. So, OK, so what are you doing to make a living at this time? So, I mean, you know,
July Ono [00:11:10] I was working at the city of Vancouver as the clerk in the sanitation department. But the thing is, it was very easy work, like it was an eight hour a day work. I did finish all my boxes working two hours. Then I had six hours left to do everyone else's job. And I'm still doing real estate investing. Instead of all that, I would do real estate in the car on the way to work. And then my break, my lunch, my break. I'm doing real estate. I'm going in. I'm looking at the classified ads. I'm phoning people about deals and I'm scheduling seminars like going to seminars. I'm scheduling time interviews with real estate agents, mortgage brokers.
Dave Debeau [00:11:51] But how did you get that spark about real estate in the first place? How did you go from being an employee and having a lifestyle? I mean, I know you went through six months of hell, but what was it that sparked your your passion for real estate? What was that?
July Ono [00:12:07] My second husband would be nice if we had met around the time I was making this transition. And he wanted nothing to do with personal development at the time. But when he met her, everything changed. The guy literally changed our lives. And we learned about the for money mountains, which is like real estate. Full a multilevel marketing and something else. So Steve said building a business takes a lot of time. It's a good five to seven year update before you start to actually get good at it. And that's a pretty good business for now. Really big business for last Internet and on marketing. I'm not really into multilevel marketing. Many, many women work because I'm not into that stuff. I have a personal connection with it. And doing that residual like books, publishing entrepreneurially was very new. The Internet work, it was so new. I once spent one hundred thousand dollars trying to learn how to monetize the Internet. Didn't work, so I put that away and said, real estate is easy, there's no barrier entry. You don't need specialized knowledge, start buying real estate, you can just buy it. OK, so he said that's the number one. We become experts in real estate first, and then once we have built up the cash flow and the equity base, then we can add the other money mountains as we go along. So he's the one that actually said I always wanted to go into real estate investing, but his ex never wanted to do it. It was, too.
Dave Debeau [00:13:46] Uncomfortable, is it isn't that I mean, looking back in 20, 20 hindsight, isn't it amazing the influence your partner, your spouse has? I mean, you hear about it
July Ono [00:13:58] all the time. Yes. It was
Dave Debeau [00:14:01] a big deal or something
July Ono [00:14:04] like that. So it's interesting what one plus one, Stephen King became like 11, 11 doing it. And so I actually coached, as I'm sure you have couples where one partner wants to do and the other doesn't, and it's never successful. And in the end, when one becomes very successful, it ends up in divorce. And so I always say you both have to be on the same page if you want to be coached by me. And so because I know the other person will totally drag you down in anchor, stonewall and block any attempt at you being successful because they're so afraid. Yeah, I was really wanting to do it. And so, Steve, we're going gangbusters together, just busting through all of our comfort zones together. And it's a lot easier when you have a partner there supporting you.
Dave Debeau [00:14:52] Let's we're taking a trip down memory lane here. So my recollection of your very first real estate deal was didn't you get four or five friends who basically had very little money between them together, like a single condo or something like that? You got started
July Ono [00:15:14] very, very first deal. I never bought it, by the way, but I found a townhouse in Langley, the tri cities, and the owner wanted like one hundred forty five thousand dollars. And I had gone to a seminar and there were like thirty, thirty five people in this room. I met every single person. Hi, Angela Giono. I'm a real estate investor. See my book. And I had a leather bound binder, a wire bound. And on each page on one page, I had the picture start on the page with a little info, square footage, no bedrooms, that kind of stuff. Right. And the address and the other page I had my analysis as to the cash flow was the rent, all the kind of stuff. And I had sixty eight pages of this. Sixty seven pages of all those. Why didn't work. And we could see they were all dated, all numbered one B two. And I spent six months going through sixty seven deals that didn't work. And believe me after every deal I quit. Oh this real estate is hard. It's a different look. Every day I would get up and start a game so I quit and start, quit and start. Quit and start so fine. I said, you know what, you just keep starting. And so I kept going and going. And guess what happened. I'm I started seeing a correlation between the numbers because I'm not the best at math. But after doing this over and over and over and analyzing deals, I finally going, hey, when a building is worth this much, the rent's that much I know doesn't work. So I was able to pretty much skip out to all the property that didn't work. And then finally, I think six months in, I'm gone looking at properties from Vancouver Island all the way to to Nunavut, Alaska. Oh, my God. All across Canada looking for deals. And I realized we can make. Too much so I had to cut off the E and I kept B.C. in Alberta. OK, I guess we're still too big to be doing two provinces. So I had to cut a bird out and I focused on B.C. still to be OK. I have to find a market in B.C. where to invest, where we started from the Lower Mainland, just on my block. And I realized, oh, too expensive. Doesn't cash flow into the Kootenays? I just kept going up and up and up. And then finally, bingo, I hit Prince George Fortson, John and Dawson's Creek and all of a sudden the prices relative to the rents started making sense and actually flew up there to Fort St. John and Prince George to actually do the drive bys myself. And that's when deal no. So I'm getting ahead of myself. These six people. I do everything on my little planner. Yeah. I said, what are you doing? Dave, was your real estate plan. Oh, OK, well, you know, I got the excuses from everybody because no one had the book that I had. No, I just said I started taking pledges. So how much would you like to invest with me? I have this deal I'm working on right now, this townhouse in Langworthy. And so I it like that. Twenty eight names, any amount with one hundred dollars to ten thousand dollars on this list. So I've got the names, phone numbers, the amounts are going. At the end of the day I actually had ninety thousand dollars pledged, but now it's not actual money pledged to me. I'm going wow. That made me feel really rich. It made me feel confident because I had zero dollars zero. I'm like forty thousand dollars in debt with no savings after my divorce. And it's like, wow, this is real collateral that I can actually use. So I went out there and negotiated with this townhouse and so I went to make the offer and so on. I went down my list. I did not take all twenty eight people could have. I just picked the the five people with ten thousand dollars.
Dave Debeau [00:19:14] There we go. Maybe five hundred dollars.
July Ono [00:19:18] No that was easy to deal with. The five thousand five people and the six person was me and so we were all buying my share and so we would be a six way split with the five with their money. That's how we want to do the math on this. And so the guy lot actually likes me because I went to the home. He told me the upstairs was rented for nine hundred dollars and the bottom suite was meant for six hundred dollars, fifteen hundred dollars a month rent a school. So then I went to the city. I asked him about is the legal suite. Apparently back then in the time frame we were all illegals, there was no way to actually make it legal. And then when I went actually to the building on an off day, the owner didn't notice I was showing up. I'll just do my drive bys. I stopped the truck in the driveway and I went, What's this person doing here? So I pulled up and I went walking into the building and thinking maybe might be the owner. And no, it's a construction guy and he's building a bathroom with the downstairs unit. I mean, what are you doing is I'm putting a suite in the basement here. What do you mean you're putting in. I thought there already was one. No, there wasn't. So I called the owner up while I'm there, so. Hey, Michael, I thought you told me there was a basement suite. Oh, now there is. That makes six hundred dollars a month. Are you sure? Oh yeah, sure. So I'm standing in your basement suite right now and there is no six hundred dollars a month. What is always going to make six hundred a month. It's going to be. So there you have the first lie. Then I got me to thinking what else is he lying about to force.
Dave Debeau [00:21:07] Yeah that's a bald faced lie. So I mean if you can do that
July Ono [00:21:12] and I already have that. So the earnest money was I think five hundred dollars would be investors voted out, of course, because I want the money back. Right. To do all that. Right. So that was our first deal. And you know, if it had gone through, it still would have been a good deal. Yeah. Because that townhouse in Langley did double in value.
Dave Debeau [00:21:32] So when was the first deal that went through with investor partners?
July Ono [00:21:36] The very next one, which was deal number sixty eight. And that was a fourplex in four Samejima. Yeah. So this is where our colleague Daryn Weeks pointed out to me that I had received sixty seven no's until the sixty eight deal and that created thirty four thousand dollars equity. They won because it was a pre pretty two hundred twenty thousand dollars and I bought it for one hundred eighty six thousand. That's a thirty percent difference on my network bottom line. And so they're in the equipment. He divided thirty four thousand dollars by sixty eight hundred dollars and no it's not too bad. And I know he says you got paid one hundred dollars for every. No. Did you realize that. You know, that's fantastic. Reframe. Yeah. So you see every time I get a no for me it's like ka ching because I'm getting paid for every no. And it's not really rejection, which is why I don't I handle rejection very differently today.
Dave Debeau [00:22:37] Now that how many years did you have on that first deal
July Ono [00:22:43] due
Dave Debeau [00:22:44] to those are the same ones that signed up. No different people.
July Ono [00:22:49] OK, but sad story. It's a sad story and a happy story because remember on that list I found one investor with forty thousand dollars. Yeah. And she was some of the admin at these seminars and wanted to go into real estate investing. We parked together verbally and I went to the whole thing. I did the deal, this fourplex worth two hundred thousand have the appraisal and I'd go shoot it down with the help of my mentor to what from what, two or seven was the list price got down to one ninety six, one ninety two for one eighty six. That was the neck. And so fantastic deal. I'm buying. And interestingly enough, Steve, my husband today, he's the one that actually came up with the six profit centers in real estate and later on we expanded to sever profit centers and state. And you explain to me how to explain it to my investor, but my money backer. And in the process of doing all this stuff, in helping me present my presentation, he's going, wow, this is a really great deal. If you didn't already have an investor, I'd take it myself.
Dave Debeau [00:23:58] Just here, Steve,
July Ono [00:24:00] I see you my mentor at the time.
Dave Debeau [00:24:03] Wow. OK, now,
July Ono [00:24:06] OK, he's my secret mentor. At the time we were just, you know, we just met. Wasn't really my
Dave Debeau [00:24:14] friendly know that from
July Ono [00:24:17] this mentoring me. He eventually became my husband, of course. And so this girl that I had a woman, I decided she's a woman because I want to empower us. But she got cold feet the week before the closing. But the thing is, I learned my lesson. I didn't collect the money from her until after I had removed subjects. Oh. So now I'm forced to close on this deal and I have no money, partner. So what do you do? I have to come up with a hundred six thousand dollars out of nowhere. It's like, OK, I'm broke. So I put on my investor cap, I don't want my money. And then I remembered what Steve said, so I went back to him. So. Hey, Steve, remember when you said that this was such a good deal? If I didn't have an investor partner, you would buy in? Well, guess what? Some walked away. It's available now. For him, it was a no brainer. Just rolled out the forty eight thousand dollars, the forty thousand year and line of credit money, by the way. So you're doing nothing. And he didn't hesitate. He jumped on it right away before I found another investor partner and the whole deal worked out. Then 18 months later, I got an offer, an unsolicited offer from a realtor saying I have clients. They're interested in buying your fourplex, are interested in selling. And I remember something that Steve told me. Never mentioned a figure. No. The other person has to mention it the first time she starts. And so when he asked me how much I wanted to sell it for and I said, remember what he said? I said, well, I have a partner. I'm not allowed to even venture to think if we're going to sell, but I'll have to call them first. But when are you planning on offering, if I may ask? And she mentioned a figure that was one hundred thousand dollars more than I thought I was going to get, like literally one hundred thousand dollars more. I'm going my jaw dropped. I'm on the phone because I'm going, oh my God, no way. How can a property go up that much in eighteen months? I thought there was something screwy going on called Steve up and I said, hey, I just got a call from this realtor and they want to buy the property for three hundred seventy thousand dollars. Yeah. One eighty six, three seventy. But how can you do that in 18 months? I mean, I was thinking maybe two fifty
Dave Debeau [00:26:54] is good, right?
July Ono [00:26:56] Yes, 18. I didn't mention it because already I would have cut myself out of one hundred thousand dollars for sure. She didn't buy it for three hundred forty five, but still crazy. And so with that seed capital, we're actually planning on selling it so soon. We had our plan to hold it for five years, refinance and then the equity and buy another property. But at that time we were actually consolidating our smaller portfolios and buying big buildings because it's just easier to manage. So it just worked out time wise to go on to our next big property. And that's when Prince George came along.
Dave Debeau [00:27:34] So getting back to raising capital sounds to me like at the end of the day, your money wasn't your husband was just a mentor at that time. Was your very first investment all right? That our money
July Ono [00:27:46] interests works for him? It was a no money down deal for me with no money down. Bill does amazing. No money. No.
Dave Debeau [00:27:55] And I did very well with it.
July Ono [00:27:58] Yes. So my mother was one of my first investors to build a multifamily.
Dave Debeau [00:28:06] So marching ahead, your dream this whole time, you're still networking, you're still doing all this kind of stuff. Talk me a little bit about how you how you developed that core group of investors, because if I recall correctly, you kind of got a core group of investors that typically invest with you over and over again. And you can add on a little bit as you go along. And at the same time, you're growing up your your database to thousands of people and a lot of your your newsletter. So how did you kind of do that and stay on the good side of the Securities Commission?
July Ono [00:28:41] No, you only really have to be very cognizant of the Canadian Securities Commission and the Securities Commission. So I tell people that I'm in private equity. And what does that mean? Well, I'm not public. I don't have an offering memorandum. I don't have a prospectus. Those documents cost thousands and thousands of dollars to some. Prospectuses are so complicated. If I actually want to read a prospectus, it was two hundred thousand dollars just to make it. And so you don't even have any money at this point is only spent on this document all designed to protect the public consumer from being defrauded. Have you read the prospectus?
Dave Debeau [00:29:25] I couldn't see.
July Ono [00:29:26] We know exactly what is on this thing. What does this mean? And it's a great thing that I was trained by another mentor on how to actually read legal documents. You take a highlighter and highlight everything you don't understand. And the first time I did this, just 99 percent of a document was highlighted. Ninety nine percent. And all I can say was, I'm so stupid. And the answer is no, you just don't know what you don't know. Let's go through every single line item and find out what is it about the sentence you don't understand. And that's how you start learning by what you don't know. And so the average person does not know how to read a prospectus, let alone analyze it, which is really crazy that we have these prospectuses designed to protect us. So what I do is as a private equity, I can only go after people for money who are my close family, not estranged family close, but my aunt and uncle don't even qualify my close friends. And so the Securities Commission has a test. Close means the exchange gifts at Christmas on the birthday, you know, the birth dates and the names of all their children, people, football games together. Like literally this is how close friends are right now.
Dave Debeau [00:30:47] I don't know the birth dates of my brother's kids for crying out loud for coffee
July Ono [00:30:53] and then close business associates. So people you work closely with, like, you know, they qualify. And anyone but the stranger who you don't know, they have to be accredited. And so what does accredited mean? You have to go on to Google and type in the words national instrument four five one zero six. And I'm forty five. Well, six and previously two. But there's C all around C, D, E, F, G there's criteria in there about credit means that you have a million dollar net worth or you have five million dollars of assets or you make two hundred thousand dollars a year for the last three years or between you and your spouse, you make three hundred thousand dollars a year for the last three years. So that makes you a credit. You're sophisticated enough to understand investments. And so those are the only people that I can take money from. If I take money from someone who doesn't fall in that category and the investment goes sideways and they lose their money, that investor has the ability to sue me for misrepresentation, which is why I never take people like that. Well, that's why I'm very careful.
Dave Debeau [00:32:04] Yeah. So you have to get close to people very, very quickly.
July Ono [00:32:07] Yes. Or and believe me, there is one lady, a good friend today when she found out she actually saved up seventy thousand dollars to invest with me. She spent four years doing that later. Yes, she found me four years later. I'm going out on a fluke again. How did you know I would even be a seminar? She just said, I just had faith you would be there. I was speaking up a bit and she came up to me at the very end. Once all the people gone. She was the last person standing in the room. I said, Hi, Julie, remember me? And I did to remember this lady. And if she stood out, she's very unique. This is nice. I do it. And I did what I say. The money I'm going, what money? I saved this money so I can invest with you. I can't take your money. I don't know you. You said. What do you mean close friend. Are you credited no, and so I said if you had in that for your time gone to be my friend, then I could take your money. Guess what she did? She made it her mission to be my best friend. She was like meeting me every day and she introduced me to her family. She really wanted to be my close friend because I would take her money right. I said, I can't. It's illegal. Is there any way possible anyway? Yeah, there's only one way you have become my friend. And so we're all her family. And even if I'm still the bigger money for a couple years to make sure that, in fact, some fanatical person stalking me, she's a very good friend to this day, has invested in multiple properties and she's also a very successful real estate investor on her own.
Dave Debeau [00:34:02] So you eventually built up a portfolio of well over five hundred rental units that I mean, I can't even. What's your best guess or how much capital do you have to raise the purchased that portfolio?
July Ono [00:34:17] Oh, well, the largest one in Thunder Bay, one of the portfolio, the three point one million dollars for one two hundred units and the 30 unit, that was half a million that sold out in ten minutes, actually, which is pretty cool. I just started going to my list in bulk order and I had to stop after the fifth person, like, oh, they're all saying yes, they no
Dave Debeau [00:34:47] longer need another permit yet.
July Ono [00:34:51] And then so I would say, oh, four million dollars down to five plus.
Dave Debeau [00:34:59] You're looking at your building a apartment complex from scratch, and Langley, which I think you had a bunch of investors on board for that. So, I mean, if you look at that one, 10 million raised for that one, yes.
July Ono [00:35:12] That would take a little longer. I did three small raises over the course of the year.
Dave Debeau [00:35:18] So out of that 15 to 20 million that you've raised to get repaid. How many people does that represent?
July Ono [00:35:26] Forty five.
Dave Debeau [00:35:27] Forty five investors,
July Ono [00:35:29] because many of them invest because the core is around 15 to 20 below. The biggest one in Langley is that the most investors I've had. Forty five people or actually 40 my shareholders, generally speaking, with couples.
Dave Debeau [00:35:45] So before that it was kind of had your core group of 15 to 20 investors, as I understand. Yeah, yeah. So those 15 to 20 year self-proclaimed Kermit, before you got into acting in real estate and all that kind of stuff. How did you develop that relationship with those people? Are the family members or how did you kind of get it so that you're comfortable raising capital from these folks?
July Ono [00:36:09] Well, the seminars go out there and put on seminars. Yes. So people want to meet you. They want to see you in person. And I would put on a seminar a week practically when I was in my head. And so I had my course are real estate. And that was once a month. And in order to get butts in seats to the seminar, I had my free seminars, my evening seminars, I think on a Wednesday, Thursday, and I had my circuit. I go to Richmond, Burnaby, Surrey and Vancouver. So these four places at once a week, I would be there just giving out my free advice about investing and all interesting things. So I had to create curriculum and how to get a very good public speaking. And that's where our Train the Trainer program came in very, very handy. That's everything that I did was based on the trainer training program. And so it's all about getting how to get people into the seats, how to deliver the information in the very accelerated learning environment, and then how to close at the end. But you have to do all three, right? I guess what? You can farm that out. You have to do it yourself. Yeah, I am the face of my brand. And so I can do hundreds of those seminars to get really good at talking to people. And I just love helping people. And when you're in a dilemma and there is brilliant right mind, that's what we put in his book, his master mind. And still the seminars were just a venue to master mind with lots of other like minded people. I would just provide the venue and people just show up. And eventually you do this often enough, you become the trusted authority. And so within that group, we had a core group of people who were closest with that money who actually wanted to invest and not Alkimos on the fringes wanting to invest. These people had money. And so when you identify those people, you take them out on one, on one because they're special. You want to create a rapport, lasting rapport. And that's why Steve and me, we would set up house meetings, you someone's home and have been there a couple or two couples, one of our anchor investors, he actually one day we thought we're just going to meet him, his wife, and he surprised us. We arrive and it's like the room is full of like two dozen people, like what's going on here? What you want to invite his family and friends, his close friends, if he actually wanted to co-opt an investment that was coming and only have personal friends and guess and guess what, it works, he was able to pretty much monopolize this one investment with only his because he said, if I want to be in there, I want my friends and family to be on the team cheap. And so this one person just basically sold out a product that we have. And it's like, well, you just can't work for me because and that's when I went, oh, you'll be one element to the well. And they literally drink and go away and we bring the herd. And that really resonated with me because instead of me just going one on one, do lots of work, I found the one key person that I needed to connect with, and he will go out there or she and bring the rest of their herd back the road.
Dave Debeau [00:39:42] I want to bring that one elephant to the well. And they did that. Yes. Oh, that was that year.
July Ono [00:39:50] I think I heard that somewhere
Dave Debeau [00:39:53] that I like that I
July Ono [00:39:54] like liked quote where I learned that from probably Robert with Kate Bolduan. Well before Harvey McCabe build your well before you drink it maybe. But will that
Dave Debeau [00:40:05] the. I don't think actually Harvey. That from Confucius for
July Ono [00:40:11] the title of his book. Yes, OK.
Dave Debeau [00:40:17] Very, very cool. So you've been you've been very successful in real estate. And interesting you hear how you started teaching and trading and all that kind of stuff. Very, very cool, very smart strategy there. Now, you've worked with a lot of people. You've been a mentor. You talked about you being getting mentored. But I know you have personally mentored many people as well. So you know by now that not everybody is Giono. Right. You know, by now that most people are going to go out and take acting lessons. Most people are going to go out and create analyze sixty seven deals over over six months and create a little binder. You know, most people aren't going to just take the massive action that that you've had, that you have. And most people are looking to build the kind of portfolio you built here. So knowing that when you're working with your clients and I'm not talking about the superstar clients that want to emulate exactly what you're doing, but the students that want to buy their next deal, they want to create it. What advice do you give them about raising capital or finding investors, that sort of thing? What do you suggest
July Ono [00:41:31] we more of those clients than the superstar? Of course, yes. And so when the students came to my course, they were only wanting to have their goal. You have to have a Y. Well, I already told everybody because I learned this hardly. If you have one goal, the first obstacle going to stop you, but the Y goal is going to take you through to the end. So why do you want to be financially free? And so I would like I want my wife to quit work standard that we both have to work on. Our kids are kids in daycare. So there's a huge emotional connection with that. And that's great. Why? So you're working to get this retired wife fantastic. And another investor said, I really want to quit my job so I can go overseas and help in an orphanage. That's an excellent wife. And because we have a personal connection there. So the better the why, the more emotional the I already knew that will be a success. And sure enough, within two years these people had were able to retire. Otherwise they were done. That's all they needed. And they started with local money. They went to your family, the friends. It's all you need. You just need to know how to leverage money. You don't need a lot, that's all.
Dave Debeau [00:42:48] So how do you how do you coach, if you don't mind sharing a little bit, what advice to give or what suggestions you give to people about how to approach their. Friends and family, if you just because you're experienced like everybody is scared shitless of asking for the money, right yourself excluded, but everybody else is just so nervous about it. They get weird about it. They screw it up like you were talking about earlier. They it's all they focus too much on what's in it for them, not what's in it for them. How do you
July Ono [00:43:20] how are you going to eliminate
Dave Debeau [00:43:22] breaking that?
July Ono [00:43:23] It's not about asking for the money. It's it's teaching education something. What would they ask you? Can I invest with you so I don't even have to ask people for money? Usually for the most part, they all want to invest. That's the best scenario. And how you do this is educate. So the bulk of my program was was training the trainer. I was actually training every investor to become an educator. That's the number one that they had to do. And so it's like you never go into trying to sell a deal to anybody. It's simply not going to work because there's the majority of people do not know how finances work. They do not know how this thing works at the time. A banker or realtor, a mortgage broker, I had a lot of these people in my courses because they had no idea how to invest in real estate and they didn't know how it worked. So even they don't know how it works. How can you explain this to an investor? So let's stop just copying me, teach people about the seven profit centers in real estate. You know, there are seven profit centers and we'll see them in another eight. But there's only seven for me, so
Dave Debeau [00:44:37] I remember Bermudas was reinvestment.
July Ono [00:44:39] That's that's the best number seven. And so I would say, did you know until then, do you have money in, like a savings account or gyasi or deposit? I would say that the majority of us do. And how's it working for you? Interest payment. What percent? Well, that one percent interest is one profit center. The interest we'll see has seven ways that leverage the money, which is why all the wealthy put the money into real estate. So I would like would you like me to explain to you how some profit centers work? We have to ask first, which let me explain. Otherwise, you're not interested PACs. We are long. Don't you really want to know? So then my next question to you is, so are you familiar with a matador in a Spanish ring with the fighter, the cheap cheap and the spear with the spirit and the bull in the fighting ring? So the matador, we have a name for him and his name was El CPR. Can you repeat that for me, please? His name is Kopitar. Yes. LCP Tyler LCP is an acronym for the Seven Centers Real Estate. So we want to remember the seven profit centers. Just think of the matador lcp keytar e l c p r. So it's very simple. E is equity. They won l leverage si is Cash LLC a cash flow. P is principal pay down car T is tax benefits e appreciation and seven it's Reinvest Equity LLC Petare in my head then that's my elevator pitch. Bittar. And so I'm educating you on the seven percenters. Now, if that elevator pitch intrigued you, OK, wait a minute, would you mind giving off and tell me more or less go away? So if that doesn't interest you, it's a pass. That person's not interested in real estate, but if it does, then I have my five men in my napkin, got a napkin and explained it on a napkin. Just get a napkin and then I just write down the l c p p a r so down beside I write e c p p r down beside and then I write out equity leveraged cash flow, which will pay down tax benefits appreciation. Do we invest equity on the napkin. Exactly what I said. I actually write it down for them and then I kind of give my story so I draw a little house. So all this I train people to do exactly what I did. I got a little house, which is a fourplex. So this is my first fourplex story that I tell them. And it just very simple math. I go houses appraised at two hundred twenty two houses listed for two hundred and seventy. Buy a house for one eighty six, key difference. Thirty four thousand dollars equity, day one, that's profit center No. One, where else can you get thirty four thousand dollars? That's more than my salary at the city of Vancouver here. So I went, wow. And so that is the most important center equity. Day one, if there's no equity when I pass, I walk away. And these are all in all important because if the equity is not there, there's no point. And so you're looking at this building, this complex. It was operating in twenty eight hundred dollars a month at the time, and approximately with my mortgage of seven hundred forty seven dollars a month plus interest tax due to these 20 dollars a month. So it's netting approximately almost two thousand a month. So thirty four thousand dollars divided by two thousand. Two thousand. That's seventeen years. No, two thousand. Seventeen months. To get the thirty four thousand equity, I would have to own the fourplex for 17 months just to break even. That's why it's so important to get the equity. What the what I'm explaining just this one profit center. I'm looking at their response to me. Are they engaged? Are they going, oh my gosh, I didn't realize that this potasnik or are they just going, oh, that's just numbers. I'm gauging their interest. How comfortable are they? How interested are they? Are the interest in just investing with me when you do want to invest themselves? So I would spent 18 hours interviewing an investor. I didn't know you just called me up in July. I heard about you from the peak and I'm going, who are you? I want to mess with you. Who are you? I don't know anything about this guy. So I bought a horse a few days. I interviewed him. He was interviewing me. I was actually interviewing him because I didn't know who he was even accredited and why I have to know his. And so the whole thing is about getting people to their why. Why. So I first I was just training him. I thought you coming to me for advice to become a real estate investor because you asked him some very specific questions about dealings working. So I gave him all my time and I helped him for how to do a deal and what he should be looking at. And then all of a sudden, about halfway through this eighteen hours, around hour, twelve of eighteen hours, he changed. He said then I think I'd rather best if you do you can argue about.
Dave Debeau [00:50:18] Yeah exactly.
July Ono [00:50:19] That's what a lot of work to go into all this stuff and you can do it but it's like how much work to do to. He actually at the time didn't want to do all that work he did later on and do something on his own. But it's like, OK, and it turned out to be quite a lovely person.
Dave Debeau [00:50:34] That's good. That's good.
July Ono [00:50:36] That's what you need to. That's why. Yeah. So it's all about helping the other person with their agenda first. And I thought he wanted to become a real estate investor. I gave him the summer profit centers. I told him unless a deal, how to make sure cash flows, how to leverage his money. What kind of things to go to what forward to go to that kind of thing. And then I think he was contemplating the whole thing, all the work required. And he was a full time employee. Right. So he doesn't have a lot of spare time. And when do you want to go to the bank when you do this? Well, you know, that's something we have to arrange if you really want it that bad. And so, you know, I just want to give you the money for the next deal. And it's like, OK, wait a minute, you really understand the set of profit centers and then that time that's when I go to my I go from educator to investible and I teach people. So once I teach people to have a proper centers in real estate, then and only then do I explain a deal. There's no point in explaining how a deal works. If your client really doesn't understand how it works and a lot of people will lie, you
Dave Debeau [00:51:46] understand, is only they don't seem stupid. They don't want to do so.
July Ono [00:51:52] You don't want to even bring them close to the truth that they don't know because they appear dumb and then they're embarrassed. So I just tell you off the get go, my bank manager doesn't even know how it works. Real estate agents don't know how real estate works. Mortgage brokers don't really know how real estate works. They do their jobs really well, but they have no concept of how real estate works. I've had dozens, hundreds of these people in my courses and in my seminars because they want to find out how it works. And so when I finally get comprehension, you know, and how it works, I take a personal story and put it into the. Guitar playing Hey, do you have a parent that bought a house? What do your parents have on house? So they it and I said, well, how much was it worth to my family? My dad bought his house in nineteen eighty seven for one hundred thirty four thousand dollars.
Dave Debeau [00:52:59] This is in Vancouver, right?
July Ono [00:53:01] Tossin. Yeah, the house is worth a million now, but at the time it was one hundred thirty four thousand dollars,
Dave Debeau [00:53:08] which was a lot of money and one hundred and nineteen eighty seven million bucks.
July Ono [00:53:13] Was a lot of high end neighborhood because it was over one hundred, not under a hundred. And it's a crazy thing to do. And so I'm telling my family story because he's not a real estate investor, because my dad believed at least owning a house that is an investment. And it actually saved my family's life literally out of financial ruin because they held on to the house for 17 years, looking for ninety nine, six, three, six, and with nineteen eighty seven. Nineteen years. Nineteen years. So they held onto health for 19 years. He paid down the mortgage refinance at the end and then twenty six he had I think we're in nominal thirty thousand dollars less than the mortgage because he kept unblended mortgages, all of my stuff, a bad deal. But in the end the house was worth five hundred seventy five thousand dollars. So less to round up the next round numbers that's twenty five thousand dollars. OK, guess what I could do with one hundred forty five thousand dollars. I invested in two buildings.
Dave Debeau [00:54:33] Nice.
July Ono [00:54:34] From that point on, just one share. Each hired them for life to cash flow. They were able to finally have a decent living because their expenses were so much per month. They were slowly going into debt every month. And when I took over my dad's finances, he had twenty eight thousand dollars on a Sears credit card at twenty eight point eight percent interest. And he was barely making the interest payments, not even touching the principal. This completely freeing their lives up. And it's like, that's my family story and I'm going, take your story. Just imagine the value of just holding a property for that length of time, just time value property.
Dave Debeau [00:55:19] So that's exciting. That's brilliant how you do that. So you got it. You got your arcanum. You got it. In order of priority for you, you make sure that the prospective investor shows some interest in that first, then you educate them about that using personal stories so that it really resonates before you can show them the deal
July Ono [00:55:38] or increase the bridge. So I don't want just my story, my stories like this to kind of pave the way to make a really true bridge. You get them to tell their story and you put it into the LCP car. Some people say, oh, my parents never owned the only rented stuff. That's fine. So the house, they rent it. What do you think, Bill? How much are they paying rent? OK, and then how much was probably worth probably going around the ballpark value. Right. You have to be able to enroll them in their own story and want to take ownership of that LCP car, comes to life, takes on a completely different it's not numbers anymore. It's their life. So much so. Yes, it's not. So unless you make the emotional transition, it's simply a head to head deal. Yeah, really. And to really get the investors invested in you, it's head and heart start.
Dave Debeau [00:56:35] Smart July. We've got to wrap things up time wise here. I really appreciate it if you're open for it. Definitely love to have you on the show again. And that time I'd like to talk with you about how you find your deals. We won't get into it this time, but obviously you've done a lot of deals over the years. How to find those good ones. How do you know you're always an expert at analyzing them. So thank you so much for your input in your experience and your wisdom on attracting best is raising capital. If people want to know more about Lyonel and I highly recommend it, get a copy of your book is if that's still available. What's the best way to do that?
July Ono [00:57:15] Oh, you email me July at the dot com and I'm working on my second book, by the way, the seven profit centers in real estate. Nice. So it'll be all over my email for my newsletter and I do have a newsletter. Gulangyu goes out every single month. And what we say, I'd like to subscribe because it's permission based on.
Dave Debeau [00:57:37] So just reach out you by email, giedd otti c dot com. Is that right? Yes, that's correct. Which stands for On the Beach Education, if I'm not mistaken.
July Ono [00:57:47] That's true.
Dave Debeau [00:57:50] Thank you so much.
July Ono [00:57:51] My pleasure. Thanks, Dave.
Dave Debeau [00:57:52] Take care. Well, thanks very much for checking out the property profits podcast, and we like what we're doing here. Please head on over to iTunes, subscribe read us and leave us the review. Be very, very much appreciated. And if you're looking to create a regular flow of inbound investor inquiries about your real estate deals, then I invite you to attend one of my upcoming live online demonstrations. And you can check that out at Investor Attraction Demo Dotcom. Take care.